Operating Profit Margin
since 2005
Calculation
Align Technology Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 17.21% | = | 100 | × | 642,595) | ÷ | 3,734,635) |
| Dec 31, 2021 | 24.70% | = | 100 | × | 976,400) | ÷ | 3,952,584) |
| Dec 31, 2020 | 15.66% | = | 100 | × | 387,171) | ÷ | 2,471,941) |
| Dec 31, 2019 | 22.54% | = | 100 | × | 542,493) | ÷ | 2,406,796) |
| Dec 31, 2018 | 23.73% | = | 100 | × | 466,564) | ÷ | 1,966,492) |
| Dec 31, 2017 | 24.00% | = | 100 | × | 353,611) | ÷ | 1,473,413) |
| Dec 31, 2016 | 23.05% | = | 100 | × | 248,921) | ÷ | 1,079,874) |
| Dec 31, 2015 | 22.31% | = | 100 | × | 188,634) | ÷ | 845,486) |
| Dec 31, 2014 | 25.42% | = | 100 | × | 193,576) | ÷ | 761,653) |
| Dec 31, 2013 | 14.27% | = | 100 | × | 94,212) | ÷ | 660,206) |
| Dec 31, 2012 | 15.28% | = | 100 | × | 85,592) | ÷ | 560,041) |
| Dec 31, 2011 | 18.84% | = | 100 | × | 90,360) | ÷ | 479,741) |
| Dec 31, 2010 | 26.54% | = | 100 | × | 102,734) | ÷ | 387,126) |
| Dec 31, 2009 | -10.89% | = | 100 | × | (34,012) | ÷ | 312,333) |
| Dec 31, 2008 | 5.10% | = | 100 | × | 15,514) | ÷ | 303,976) |
| Dec 31, 2007 | 11.91% | = | 100 | × | 33,855) | ÷ | 284,332) |
| Dec 31, 2006 | -18.19% | = | 100 | × | (37,536) | ÷ | 206,354) |
| Dec 31, 2005 | 1.18% | = | 100 | × | 2,446) | ÷ | 207,125) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating profit margin exhibits a transition from significant early-stage volatility to a prolonged period of stability, followed by recent fluctuations. Between 2005 and 2022, net revenues grew substantially, while the efficiency of converting those revenues into operating profit evolved through three distinct phases.
- Initial Operational Volatility (2005–2009)
- The initial period was characterized by inconsistent operational performance and instability. The margin shifted from 1.18% in 2005 to a deficit of -18.19% in 2006, followed by a recovery to 11.91% in 2007. This erratic trend persisted through 2009, which saw a contraction to -10.89%, indicating significant challenges in maintaining operational profitability during the company's earlier years.
- Operational Stabilization and Maturity (2010–2019)
- A marked improvement in operational efficiency occurred starting in 2010, with the margin increasing to 26.54%. After a period of moderation between 2011 and 2013, where margins ranged from 14.27% to 18.84%, the company entered a phase of high stability. From 2014 through 2019, the operating profit margin remained consistently robust, fluctuating within a narrow band between 22.31% and 25.42%, reflecting a scalable and mature operating model.
- Recent Performance Fluctuations (2020–2022)
- The most recent interval shows a departure from the prior decade of stability. A notable contraction to 15.66% was observed in 2020, followed by a sharp rebound to 24.70% in 2021, returning to historical peak levels. However, the margin declined again to 17.21% in 2022, suggesting a renewed period of volatility in the relationship between revenue growth and operating expenses.
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Comparison to Competitors
Align Technology Inc., operating profit margin, long-term trends, comparison to competitors
| Align Technology Inc. | Abbott Laboratories | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 17.21% | 19.16% | 25.35% | 18.15% | 8.83% |
| Dec 31, 2021 | 24.70% | 19.56% | 31.89% | 14.89% | 8.40% |
| Dec 31, 2020 | 15.66% | 15.48% | 24.09% | 16.57% | 8.76% |
| Dec 31, 2019 | 22.54% | 14.21% | 30.69% | 20.51% | 8.19% |
| Dec 31, 2018 | 23.73% | 11.94% | 32.21% | 22.20% | 7.71% |
| Dec 31, 2017 | 24.00% | 6.30% | 33.71% | 17.94% | 7.60% |
| Dec 31, 2016 | 23.05% | 15.27% | 34.95% | 18.35% | 7.03% |
| Dec 31, 2015 | 22.31% | 14.05% | 31.04% | 18.59% | 7.05% |
| Dec 31, 2014 | 25.42% | 12.84% | 25.56% | 22.42% | 7.92% |
| Dec 31, 2013 | 14.27% | 12.03% | 37.64% | 26.53% | 7.90% |
| Dec 31, 2012 | 15.28% | 20.28% | 40.30% | 0.00% | 8.42% |
| Dec 31, 2011 | 18.84% | 14.81% | 39.54% | 0.00% | 8.36% |
| Dec 31, 2010 | 26.54% | 17.31% | 39.29% | 0.00% | 8.41% |
| Dec 31, 2009 | -10.89% | 20.27% | 35.87% | 0.00% | 7.35% |
| Dec 31, 2008 | 5.10% | 19.28% | 35.53% | 0.00% | 6.54% |
| Dec 31, 2007 | 11.91% | 17.67% | 34.41% | 0.00% | 10.57% |
| Dec 31, 2006 | -18.19% | 9.09% | 28.81% | 0.00% | 9.88% |
| Dec 31, 2005 | 1.18% | 19.53% | 30.25% | 0.00% | 11.98% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).